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India's trade linkage with South Africa: Prospects and future potential

Author

Listed:
  • Wani, Nassir Ul Haq
  • Rehman, Dr. Afzal Ur
  • Kukreja, Mukta

Abstract

India and South Africa are the two important emerging economies of the world with strong history of understanding. To shed light on the possibilities and limits of important coalitions among budding countries, this article focuses on Indo-South Africa trade relations. The article evaluates the structure of comparative advantage for India and South Africa and the modification in the economic scenario over a 14-year period from 2001 to 2014. The article attempted to evaluate India– South Africa trade using revealed comparative advantage (RCA) and revealed import dependence (RID) analysis in exports and imports in different type of goods categorized on the basis of their fabrication. The analysis shows broad similarities in the structure of comparative advantage for India and South Africa. Both India and South Africa enjoy comparative advantage for labour and resource intensive sectors in the global market. India enjoys comparative advantage in the exports of labour-intensive items such as textiles and scale-intensive items while South Africa enjoys advantage in manufacturing goods. The trade growth trajectory expansion between the economies has lead to sustained growth in their merchandise trade flow.

Suggested Citation

  • Wani, Nassir Ul Haq & Rehman, Dr. Afzal Ur & Kukreja, Mukta, 2016. "India's trade linkage with South Africa: Prospects and future potential," MPRA Paper 69324, University Library of Munich, Germany, revised 02 Feb 2016.
    • Handle: RePEc:pra:mprapa:69324
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    References listed on IDEAS

    as
    1. Kojima, Kiyoshi, 1964. "The Pattern of International Trade Among Advanced Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 5(1), pages 16-36, June.
    2. Balassa, Bela, 1977. "'Revealed' Comparative Advantage Revisited: An Analysis of Relative Export Shares of the Industrial Countries, 1953-1971," The Manchester School of Economic & Social Studies, University of Manchester, vol. 45(4), pages 327-344, December.
    3. Nassir Ul Haq Wani & Jasdeep Kaur Dhami, 2014. "Economic Concert, Collaboration and Prospective of Trade between India and Brazil," Foreign Trade Review, , vol. 49(4), pages 359-372, November.
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    More about this item

    Keywords

    India: South Africa: RCA: RID;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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